Federal Government slashes grocery prices in remote Kimberley: Outback Stores lock costs to match city rates

Remote Kimberley residents shopping at Outback Stores are about to experience a bill shock that should bring smiles to their faces. The cost of some essential groceries has been slashed by 30 to 50 per cent thanks to a Federal Government trial to lock the prices on selected products so shoppers pay the same as their city-counterparts. That means a 12 pack roll of Vevelle toilet paper is now $6 and a 575 gram packet of Weetbix is $4.50. Ahead of a looming Federal election, Prime Minister Anthony Albanese announced in his Closing the Gap address this week that selected essential items in some 76 remote stores would be locked to city prices. Outback Stores, that owns 58 supermarkets across remote Australia, ten of which are in the Kimberley, are administering the program. The Commonwealth-owned supermarket chain has slashed prices on 38 items across 10 product groups to match corporate retail pricing. They have been able to do this with freight subsidies on selected products. The trial will run for four years and is budgeted to cost the Federal Government $50 million. Outback Stores CEO Michael Borg said they have been working with the Remote Food Security Work Group for several months on a strategy to reduce the cost of high-volume products. “Outback Stores already has a policy of lower pricing for essential food items, such as fresh fruit and vegetables, but the cost of freight and higher operating costs makes it hard to keep all prices down,” he said. “Subsidising procurement and logistics recognises the disadvantage faced by many small, remote communities while allowing community-owned stores to operate commercially,” he said. Supermarket shoppers in remote Kimberley communities from Beagle Bay in the west to Kalumburu on the north coast and Balgo in the desert will see that prices on the following items have already been slashed. Other items that are expected to be added to the list as the trial evolves are tinned tuna, rice, bread, canned meals, yoghurt, canned baked beans and spaghetti, beef mince, lean, chicken (skinless), eggs, sugar reduced and sugar free soft drinks, bottled and cask water, canned fruit in natural juice, baby formula, toothbrush and toothpaste as well as tampons and pads. The action comes after consumer advocacy group Choice found remote First Nations communities across Western Australia and the Northern Territory often pay more than double for groceries compared to major cities.